New York prediction markets: Are they legal? Where to trade

The emergence of prediction markets has opened up new avenues for sports fans to take a monetary stake in sports outcomes. Brands like Kalshi, Polymarket and ProphetX are available to users in New York to trade on sports, and brands like DraftKings and FanDuel have prediction market products also available in NY but sports trading is restricted because they also operate licensed sportsbooks in the state. The landscape may shift, as the Empire State has initiated legal action to curb prediction market reach. The markets remain available for now. We'll cover the options available to New Yorkers below.

Are prediction markets legal in New York?

As of this moment, yes, prediction market apps are legally regulated by the CFTC and are available in New York. The New York state and the attorney general's office is currently embroiled in legal standoffs with both federal regulators and prediction market operators including Kalshi, Novig and others. New York filed a lawsuit against Kalshi on July 31, alleging that Kalshi's sports markets amount to sports betting and that Kalshi is thus operating an illegal unlicensed gambling operation. 

The Commodity Futures Trading Commission (CFTC), the federal regulatory body that oversees commodities trading and has claimed jurisdiction over prediction markets, claims that New York lacks standing to take action against a federally regulated operation like Kalshi. Sportsbooks are regulated at the state level, which is why New York feels that it has the authority to go after Kalshi if it believes that Kalshi's sports markets are actually sports betting. 

Mobile sports betting is legal in New York and major sportsbooks are licensed to operate in the state. There is a distinct separation between sports betting and prediction market operations which is why operators with both sportsbook and prediction products do not offer sports trading in states where they offer their regulated sportsbook. 

This is the case in NY for DraftKings and FanDuel, while Fanatics doesn't offer any prediction markets in NY or any other states where they have a live sportsbook. On the other hand, prediction market-only operators like Kalshi, Polymarket, ProphetX and Novig offer sports contracts in most states they operate, including NY. 

NY Prediction Market Operators & Promo Codes

Our picks for some of the best prediction market promos can unlock more than $175 in bonus trading credits across several operators in New York. 

Recent legal updates

Oct. 27, 2025: Kalshi filed for an injunction to prevent the New York State Gaming Commission from enforcing New York's gambling laws against Kalshi. 

April 21, 2026: New York Attorney General Letitia James sued Gemini Titan and Coinbase in separate filings which sought permanent injunctions against the companies' prediction markets, claiming they were unlicensed gambling operations. The State of New York said it was seeking full restitution of what it said were illegally obtained gains from those markets and further civil penalties.

April 24, 2026: In response to the lawsuits against Gemini Titan and Coinbase, the CFTC sued New York to see a permanent injunction to prevent the state from enforcing its gambling laws against platforms registered with the CFTC.

July 7, 2026: Kalshi's preliminary injunction was denied, with the ruling judge finding that New York's gambling laws apply to Kalshi's sports markets. Kalshi appealed the ruling to the Second Circuit of the U.S. Court of Appeals. 

July 15, 2026: Kalshi filed a motion for an immediate injunction pending the Second Circuit's ruling. The New York A.G.'s office agreed to not bring action against Kalshi until July 30. 

July 27, 2026: Kalshi's appeal was denied by the Second Circuit.

July 30, 2026: The CFTC filed for a temporary restraining order to prevent New York from enforcing its gambling laws against Kalshi on the basis of preemption. The federal court denied the motion with extreme prejudice the next day.

July 31, 2026: A.G. James sued Kalshi, claiming Kalshi was operating an illegal gambling operation in New York. The state's suit seeks an injunction on Kalshi offering event contracts in New York. New York State is seeking restitution of what it says are illegal gains. The monetary cost to Kalshi, when combined with punitive damages, would total more than $30 billion. Kalshi subsequently filed to have the proceedings moved to federal court. 

August 12, 2026: The CFTC ordered Kalshi to continue operations in New York despite the state's lawsuit. The same day, the New York City Council opened an investigation into the advertising practices of four prediction market operators, including Kalshi and Polymarket.

What Comes Next

• Second Circuit Appeals: Court of Appeals will hear oral arguments in late Fall 2026, with a decision expected in late 2026 or early 2027. 
• Novig Federal Injunction: The Southern District of New York is expected to issue a ruling in the near-term. 
• U.S. Supreme Court Review: Since the Third Circuit favored state power in New York and other states, the U.S. Supreme Court may take up the case eventually.

Where to trade in New York

Kalshi promo code

The latest Kalshi promo code CBSSPORTS55 unlocks $55 in bonus trading credits after new users trade $25+. Here are the details. 

*Sports contracts currently unavailable in MI, NV and WA

Must be 18 or older and a legal resident of a state where Kalshi operates. New users will be awarded $55 in bonus trading credits after making a trade of $25 or more within 30 days of opening a brand new Kalshi account. The bonus credits cannot be withdrawn as cash and the full $55 credit must be used in full to place trades before any trading profit can be withdrawn. The bonus credits expire after seven days if they go unused. 

Kalshi is one of the biggest names in the prediction market space. The operator offers markets for sports, entertainment, current events, weather and more. The user interface displays a probability of an outcome along with share prices for "Yes" and "No," with each outcome priced in cents. Correct predictions pay out $1 per contract.

Polymarket promo code

The Polymarket promo code CBSSPORTS offers $50 in bonus trading credits to new users after depositing $10 or more. Here's how it works.

You must be 18+ in a state where Polymarket US is authorized to operate and be a totally new Polymarket US user. Existing users are not eligible for the offer. Requires a minimum deposit of $10. The $50 bonus credits are not withdrawable as cash and can only be used on Polymarket US. Some markets are not available in certain states and markets available on the global Polymarket desktop site may not be available on the Polymarket US mobile app. Full terms and conditions available at polymarket.us. 

Polymarket US is available only via mobile app. Like Kalshi, Polymarket US offers markets on a variety of subjects, including sports. Its share pricing is shown as percentages by default and that percentage will correspond with a share price. For instance, if the Yankees have a 64% chance of winning a game, "Yes" on the game outcome market will be shown as 64% and that event contract will cost 64 cents. Users can go into the app's settings and change the market price display to their preference. 

ProphetX promo code

The ProphetX promo code CBSSPORTS allows new users to get $75 in Incentive Funds after trading $50+. Here are all of the details on how to claim this offer. 

This offer is exclusive to new users that are 18+ and physically located in active states (excludes NV). The account must be verified and in good standing.

After registering for a new account with ProphetX promo code CBSSPORTS, place your first-time trades totaling $50+ within 30 days of account approval. Qualifying trades must open new positions and be executed at a price of $0.80 or below.

This will trigger $75 in total bonus, issued in three $25 installments on Day 1, Day 7, and Day 14; however, you must fully utilize (trade-through) your current $25 bonus credit within 7 days of receipt to unlock the next installment. Failure to do so forfeits remaining bonus funds.

All bonus installments expire 45 days after issuance if not used. Incentive Funds are non-withdrawable and must be used as collateral for new positions. Only net profits from successfully settled trades are withdrawable.

Novig promo code

Must be 21+ and physically located in a state where Novig operates. New users must deposit $10 or more to qualify for the offer and receive $25 in trading credits. Bonus trading credits cannot be withdrawn as cash and must be used to make trades on Novig. The credits are disbursed as five $5 trading credits, which can be applied after selecting a trade. The $5 credits must be applied in full and cannot be split, combined with other promotions, partially used or used on Make Orders. The credits can only be used on straight trades. Credits expire 30 days after being issued. Trades made using bonus credits pay out both profit and the initial stake as withdrawable cash. 

Novig is a sports-only prediction market, meaning users cannot make trades on entertainment or current events on the platform. While it is a relatively smaller brand, it recently partnered with the New York Mets to become the team's official prediction market sponsor. Like on Polymarket, share prices are displayed in percentages. 

Featured market: Rams vs. Broncos on Kalshi

The Los Angeles Rams will play on the road for the first time this season on Sunday Night Football, visiting a tough Denver Broncos unit coming off its first win of the year. Below are Kalshi's prices for the contest.

• LA Rams: Yes ($0.55); No ($0.46)
• DEN Broncos: Yes ($0.46); No ($0.55)

New York-specific things to know

As stated above, the legal battle over prediction market oversight in New York is being fought on multiple fronts. The situation continues to evolve and New Yorkers should not consider the availability of prediction markets in the state to be a settled matter. 

For now, the state's prediction market operators continue to conduct business in the state. Additionally, both Kalshi and Polymaret are headquartered in New York City. 

Things to keep in mind

Prediction markets operate on a peer-to-peer model where share prices and probability fluctuate based on market movements and trading volume. Users do not trade against "the house," but other users. 

The fluid legal landscape in New York means prediction market traders' options could shift with short notice. It may be beneficial to stay abreast of the latest news as the legal battle unfolds. 

FAQ

Are prediction markets legal in New York right now?

For now, prediction markets continue to operate in the state of New York and major sports teams like the Yankees and Mets have announced official prediction market partners. That being said, the state is locked in a legal battle over the legality of the brands' offerings and whether the state or federal government should have regulatory jurisdiction over the markets. 

Which prediction market operators are active in New York?

Kalshi, Polymarket US, ProphetX,and Novig all offer sports markets to New Yorkers. DraftKings Predictions and FanDuel Predict are also available in the Empire State but do not offer sports markets to New Yorkers.

What bonuses are available for New York traders? 

Kalshi, Polymarket US, ProphetX, DraftKings and Novig all offer New Yorkers sign-up promos. The sign-up bonuses listed below all offer bonus trading credits to new users. Each brand's offer differs. 

*19+ in AL & NE; 19+ in CO for some games; 21+ in AZ, MA, & VA)

What's the minimum age to trade prediction markets in New York?

Kalshi, Polymarket US and DraftKings Prediction all require new users to be 18+, while Novig has a 21+ requirement.

Does every platform face the same legal situation in New York?

Kalshi is currently the state's main opponent in court, but it stands to reason that any result that comes from the legal proceedings would then be used as precedent to dictate the state of play for other operators.

Trade Responsibly

Trading involves substantial risk of loss and is not suitable for everyone. Past performance is not indicative of future results. Participation in prediction markets is subject to applicable eligibility requirements.  Availability may be restricted or prohibited in certain jurisdictions and participants are responsible for ensuring their participation complies with applicable laws and regulations in their jurisdiction. Prediction market content is not intended for individuals located in jurisdictions where they are prohibited. See the NCPG's Financial Trader Health and Safety Initiative for more information.

Prediction markets should be used for entertainment purposes, in a fun responsible manner. Concerned about your trading behavior? Call or text 1-800-MY-RESET.